Cost Category Maintenance

Menu Path: Manufacturing $Images\bluerarw.gif$ Module Setup $Images\bluerarw.gif$ Cost Category Maintenance

Purpose

Overview

Use Cost Category Maintenance to create, edit, and delete, cost categories, which are records of the steps required for an operation. You should set up a cost category for each step that will be performed. For each cost category, you can set up labor and overhead rates, and specify how time and costs are calculated for the performed work.

Example A typical operation may include three cost categories as follows:

Cost Category	Time Type	Cost Type
Setup	Fixed (e.g., 30 minutes)	Per Hour
Run time	Per Unit (e.g. one unit every 2 minutes)	Per Hour
Cleanup	Fixed (e.g. 30 minutes)	Fixed

You must set up cost categories if you want to record labor costs and schedule work orders.

You can assign default cost categories to work center groups, work centers, and operations.

Creating Cost Categories

To create a cost category:

Click the New button in the ribbon.
Enter a location prefix or name in which the cost category is performed in the Location Prefix or Location Name field, or if the operation is performed in all locations, select the All check box.
Enter the cost category code in the Category Code field.
Enter a name for the cost category in the Category Name field.
Enter a description of the cost category in the Description field.
Select whether time recorded for the cost category is fixed or per unit.
Select whether the cost type is fixed, per unit, or per hour. If the cost type is per unit, and multiple units must be manufactured together, enter the multiple value in the Multiplier field.
Enter the cost of labor for the cost category in the Labor Rate field.
Enter the overhead costs associated with the cost category in the Overhead Rate field.
If the cost category is for outside processing, enter the service product code and purchase class in the Service Product Code and Purchase Class fields.
If you want general ledger accounts to resolve from the cost category, click the Manufacturing Accts tab, and enter the accounts.
Click the OK button in the ribbon. The cost category is created.

Ribbon Home Tab Buttons

Button	Description
Exit	Click this button to close the Cost Category Maintenance window.
New	Click this button to create a cost category.
Update	Click this button to update the selected cost category. Note If you update the labor and/or overhead rate for a cost category, the Bill of Material Cost Category Update window appears, and allows you to select bills of material that you want to update with the new rate(s).
Delete	Click this button to delete the selected cost category.
OK	Click this button to accept an action. This button is only available after you click the New, Update, or Delete button in the ribbon.
Cancel	Click this button to cancel an action. This button is only available after you click the New, Update, or Delete button in the ribbon.
First	Click this button to display the first cost category.
Prev	Click this button to display the previous cost category.
Next	Click this button to display the next cost category.
Last	Click this button to display the last cost category.

Fields and Buttons

Field or Button	Description
All	Select this check box to display or maintain cost categories for all locations.
Location Prefix	Enter a location prefix for which you want to display or maintain cost categories, or click the Lookup button to select a location prefix.
Location Name	Enter a location name for which you want to display or maintain cost categories, or click the Lookup button to select a location prefix.
Category Code	Enter a code for the cost category, or click the Lookup button to select an existing cost category code.
Category Name	Enter a name for the cost category, or click the Lookup button to select an existing cost category name.

Main Tab Fields and Buttons

Field or Button	Description
Description	Enter a description of the cost category.
Cost Type	Select one of the following cost types for the cost category: Fixed - The cost for the cost category is fixed and not related to units manufactured or the time it takes to perform work. Per Unit - The cost for the cost category is calculated per unit of finished good manufactured. Per Hour - The cost for the cost category is calculated per hour of work.
Multiplier	Enter a multiplier for the cost category if the cost is for a subunit of a product. Example The cost category is for painting legs of a chair. Enter 4 as the multiplier if all 4 legs are always painted. This value is used as the product quantity ordered for the service product purchase order for outside processing. This field is only available if you select the Per Unit radio button.
Estimated Time Type	Select one of the following time types used to calculate the estimated time for the cost category: Fixed - Time for the cost category is a fixed period, such as 10 minutes, 20 seconds, or 3 hours. Per Unit - Time for the cost category is a fixed period for each unit of manufactured product, such as 5 minutes per unit. Note You can specify the exact amount of time for specific work center groups, work centers, and operations.
Included in Total Work Time	Select this check box if the cost category is used to calculate the operation times and expected finish dates for work orders.
Labor Rate	Enter the labor rate for the cost category in the currency displayed. If a specific location is selected for the cost category, this rate is in the default currency for the location. If the All check box is selected for the cost category, this rate is in the default general ledger currency.
Overhead Rate	Enter the overhead rate for the cost category in the currency displayed. If a specific location is selected for the cost category, this rate is in the default currency for the location. If the All check box is selected for the cost category, this rate is in the default general ledger currency.
Service Product Code	Enter the product code of the service product associated with the cost category, or click the Lookup button to select a service product code. This is typically entered for outside processing to indicate that product that is added to the automatically generated purchase order.
Name	Enter the product name of the service product associated with the cost category, or click the Lookup button to select a service product name. This is typically entered for outside processing to indicate that product that is added to the automatically generated purchase order.
Purchase Class	Enter the purchase class to use for the automatically generated purchase order if the cost category is used for outside processing, or click the Lookup button to select the purchase class.

Manufacturing Accts Tab Fields and Buttons

Field or Button	Description
Work in Process - Labor	Enter all or part of the labor work in process general ledger account to use when resolving the account from the cost category, or click the Lookup button to display G/L Prompting, which allows you to select all or part of an account by element. For more information on labor work in process accounts, see Manufacturing Account Resolution. The entered account is only used for component products. It is not used for manufactured products. Note You can enter asterisks (*) for account elements you do not want to resolve from the cost category. You must enter an asterisk for each digit in the account element. For example, if an element has a length of four, you must enter four asterisks.
Work in Process - Overhead	Enter all or part of the overhead work in process general ledger account to use when resolving the account from the cost category, or click the Lookup button to display G/L Prompting, which allows you to select all or part of an account by element. For more information on overhead work in process accounts, see Manufacturing Account Resolution. The entered account is only used for component products. It is not used for manufactured products. Note You can enter asterisks (*) for account elements you do not want to resolve from the cost category. You must enter an asterisk for each digit in the account element. For example, if an element has a length of four, you must enter four asterisks.
Work in Process - Outside Processing	Enter all or part of the outside processing work in process general ledger account to use when resolving the account from the cost category, or click the Lookup button to display G/L Prompting, which allows you to select all or part of an account by element. For more information on outside processing work in process accounts, see Manufacturing Account Resolution. The entered account is only used for component products. It is not used for manufactured products. Note You can enter asterisks (*) for account elements you do not want to resolve from the cost category. You must enter an asterisk for each digit in the account element. For example, if an element has a length of four, you must enter four asterisks.
Absorbed - Labor	Enter all or part of the absorbed labor general ledger account to use when resolving the account from the cost category, or click the Lookup button to display G/L Prompting, which allows you to select all or part of an account by element. For more information on absorbed labor accounts, see Manufacturing Account Resolution. The entered account is only used for component products. It is not used for manufactured products. Note You can enter asterisks (*) for account elements you do not want to resolve from the cost category. You must enter an asterisk for each digit in the account element. For example, if an element has a length of four, you must enter four asterisks.
Absorbed - Overhead	Enter all or part of the absorbed overhead general ledger account to use when resolving the account from the cost category, or click the Lookup button to display G/L Prompting, which allows you to select all or part of an account by element. For more information on absorbed overhead accounts, see Manufacturing Account Resolution. The entered account is only used for component products. It is not used for manufactured products. Note You can enter asterisks (*) for account elements you do not want to resolve from the cost category. You must enter an asterisk for each digit in the account element. For example, if an element has a length of four, you must enter four asterisks.
Absorbed - Outside Processing	Enter all or part of the absorbed outside processing general ledger account to use when resolving the account from the cost category, or click the Lookup button to display G/L Prompting, which allows you to select all or part of an account by element. For more information on absorbed outside processing accounts, see Manufacturing Account Resolution. The entered account is only used for component products. It is not used for manufactured products. Note You can enter asterisks (*) for account elements you do not want to resolve from the cost category. You must enter an asterisk for each digit in the account element. For example, if an element has a length of four, you must enter four asterisks.